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ICON ENERGY LIMITED
2015 Annual Report ABN 61 058 454 569
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
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FOR THE YEAR ENDED 30 JUNE 2015
Tax Consolidation
(d)
Goods and Services Tax
(e)
Property, Plant, and Equipment
Class of Asset
Depreciation Rate
Plant and Equipment
20 – 40%
Buildings
2.50%
Fixtures and Fittings
3 - 20%
The gain or loss on disposal of all property, plant and equipment is determined as the difference between the
carrying amount of the asset at the time of disposal and the proceeds of disposal, and is included in operating
profit before income tax in the year of disposal.
The depreciation rates used for each class of depreciable asset are:
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that
net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred
tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and
liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different
taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the
respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or
liabilities are expected to be recovered or settled.
The depreciable amount of all property, plant and equipment including capitalised leased assets, but excluding
freehold land, are depreciated over their useful lives using the diminishing method commencing from the time the
asset is held ready for use. Leasehold improvements are amortised over the shorter of either the unexpired period
of the lease or the estimated useful lives of the improvements. Depreciation rates and methods are reviewed
annually and, if necessary, adjustments are made.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that
it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be
utilised.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from,
or payable to, the taxation authority is included as part of receivables or payables in the statement of financial
position.
Icon Energy Limited ("Head entity") and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under tax consolidation legislation. Each entity in the Group recognises its own current and
deferred tax assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to
allocation. Current tax liabilities/(assets) and deferred tax assets arising from unused tax losses and tax credits in
the subsidiaries are immediately transferred to the head entity. The Group notified the Tax Office that it had
formed an income tax consolidated group to apply from 1 July 2008.
Property, plant and equipment are brought to account at cost less, where applicable, any accumulated
depreciation or amortisation. The carrying amount of property, plant and equipment is reviewed annually by
directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is
assessed on the basis of the expected net cash flows which will be received from the assets employment and
subsequent disposal.
Cash flows are included in the consolidated statement of cash flows on a gross basis. The GST component of
cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation
authority is classified as operating cash flows.
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except
where the amount of GST incurred by a purchaser is not recoverable from the taxation authority. Under these
circumstances, the GST is recognised as part of the cost of acquisition of an asset or as part of an item of
expense.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary
difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date.
Their measurement also reflects the manner in which management expects to recover or settle the carrying
amount of the related asset or liability.
NOTE 1 - STATEMENT OF ACCOUNTING POLICIES (Continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
